JAKARTA, TheKabarNews.com—Indonesia plans to raise state spending above Rp4 quadrillion for the first time in 2027. This places greater scrutiny on how the government funds and implements its priority programs.

Finance Minister Suahasil Nazara said the government and the House of Representatives (DPR) were still discussing the 2027 draft state budget (RAPBN). The delay was because the initial proposal underwent revisions in the House of Representatives’ Budget Agency (Banggar DPR).

“This will most likely be the first time in the history of the Republic of Indonesia that state spending exceeds Rp4,000 trillion,” Suahasil said at the ANTARA Business Forum in Jakarta on Wednesday, September 23.

“This is not merely a large amount of spending but also a major responsibility.”

The government initially proposed Rp4,097.2 trillion in expenditure and Rp3,426 trillion in revenue. On September 7, the government and the Banggar DPR agreed on a provisional revision. This revision raised both figures by Rp9.1 trillion.

Under the revised posture, spending would reach Rp4,106.3 trillion, while revenue and grants would total Rp3,435.1 trillion. The changes leave the projected deficit unchanged at Rp671.2 trillion, equivalent to 2.4 percent of gross domestic product.

The provisional plan allocates Rp3,371.3 trillion to central government expenditure. Transfers to regional administrations remain set at Rp735 trillion.

The budget supports eight national-priority clusters. These cover food security, energy and water, education, healthcare, industrial development, infrastructure, the rural economy and poverty reduction.

Suahasil said spending must target areas that raise productivity rather than focus only on disbursement rates.

“State spending must reach the points that improve the quality of human capital,” he said.

The government is targeting 6 percent economic growth in 2027. Suahasil said investment would need to expand by about 7 percent to support that goal.

The Finance Ministry plans to coordinate fiscal policy with the financial sector and state investment agency BPI Danantara. However, their financing carries different responsibilities and risks from expenditures appropriated through the state budget.

The government expects taxation to provide most of the revenue. The original proposal projected Rp2,908 trillion in tax and customs receipts, while subsequent discussions raised the figure to Rp2,912 trillion.

The planned deficit remains below Indonesia’s statutory ceiling of 3 percent of GDP. Additionally, it is lower than the government’s latest projection of about 2.85 percent for the 2026 deficit. However, it exceeds the 2.68 percent originally set in the 2026 budget.

Current budget data provide context for the 2027 debate. As of August 31, 2026, the government had collected Rp2,055.6 trillion and spent about Rp2,295.7 trillion.

The resulting deficit stood at Rp240.1 trillion, or 0.93 percent of GDP, according to the Finance Ministry. The Rp2,955.69 trillion revenue figure cited in some reports is inconsistent with the ministry’s official data.

The DPR and government must complete deliberations before adopting the plan as the 2027 state budget. Importantly, its eventual impact will depend not only on its record size but also on revenue collection, project selection and measurable public outcomes.